BROKERAGE AND DEALERSHIP COMPANY SERVICES
Brokerage houses can perform a number of services. According to the type of work that is performed, departments are formed within the brokerage house. The organization of brokerage houses and the structure of the department differ depending on the type of services that the brokerage house provides. It has already been pointed out that the following departments are being formed within brokerage houses – the brokerage department, the research department, the corporate department and the general affairs department, so the focus will be on the activity and business within these departments.
In addition to routine brokerage activities, which include opening and maintaining ownership accounts of securities with the Central Registry, opening and maintaining trading, pledge, repo accounts of securities, receiving and listing orders for sale / purchase of shares and bonds or opening deposit accounts securities, the full assistance of the brokerage team in choosing an investment strategy is also available. The help is reflected in the choice of the moment of buying and selling shares with a complete analysis of the financial indicators of the company whose shares you are buying through portfolio investing.
Within the analysis department, processes of monitoring and analyzing market trends take place, on the basis of which decisions on investing or refraining from it will be made. The so-called service brokers, who provide clients with a complete service, have numerous research teams, whose work enables the provision of the highest quality information to clients who want to pay well. The business of a brokerage house largely depends on the quality of information coming from this department. When making decisions on the rating of individual securities and recommendations on further retention of these securities, their purchase or sale, the analysis department uses all available and less available sources of information.
Beginning in January 2004, the Central Registry, Depository and Securities Clearing House keeps a single record of legal holders of securities and each joint stock company has the obligation to register them in the Central Securities Depository. Contact between the joint stock company and the Central Registry is made through a member of the Central Registry with whom the issuer signs a Corporate Agency Agreement. With the contract on the provision of services in the process of performing the corporate activities of the brokerage house, as corporate agents, they perform a number of administrative and advisory tasks for the client. Thus, brokerage houses, as corporate agents, harmonize the book of shareholders with the database of the Central Registry, all activities related to listing and trading on the Belgrade Stock Exchange, as well as public announcement of the prospectus and all important business indicators and other events that may significantly affect the share price on the Stock Exchange. At the client’s request, the agent purchases and sells its own shares, performs consulting services in the process of new issues of the client’s securities, and also notifies the Central Registry of the shareholders’ meeting. The corporate agent also makes dividend payments through the Central Registry of Securities or Money, as well as consulting services related to the recapitalization of the company or changes in the legal form.
In the department of general affairs, work is performed which is performed by other companies, different sectors and activities. This department includes legal affairs, accounting, administration, IT, PR and marketing activities, and it is important to point out that each of the accompanying departments that a brokerage house may have has a significant role in the overall business.